Avoiding Rehab Nightmares: Why Every Investor Needs a Scope of Work

Insights from Real Estate Investor Andrew Syrios

For real estate investors, rehabbing a property can either be a smooth, profitable process—or an absolute disaster. A poorly managed rehab leads to overblown budgets, endless delays, and frustrating disputes with contractors.

In reviewing several articles from seasoned investor Andrew Syrios, many of these headaches stem from a lack of clear direction at the start of the project. One of the biggest mistakes investors make? Relying on vague, generalized estimates rather than a detailed, written scope of work (SOW).

"If your rehab estimate just says ‘Replace kitchen: $5,900’ or ‘Paint interior: $4,300,’ you’re setting yourself up for confusion, disputes, and surprise costs," Andrew explains. "You and your contractor need to be on the same page—literally—before the first nail is hammered in."

What is a Scope of Work, and Why Do You Need One?

A scope of work is a detailed breakdown of every aspect of the rehab project. Instead of just saying “paint the walls,” an SOW specifies:

Without these details, investors often find themselves at the mercy of misinterpretations and unexpected charges. Contractors might use lower-grade materials, miss small but important details, or even place appliances and utilities in the wrong location—simply because they weren’t explicitly instructed otherwise.

The Problem with Vague Bids

Investors frequently receive bundled bids that make it hard to spot inflated costs or missing items. Andrew warns that a bid like:

…could include basic fixtures or luxury upgrades—but without individual line items, you won’t know until the invoice arrives.

Instead, a detailed bid should break out costs:

With this line-item approach, you can compare bids accurately and ensure you’re getting what you paid for.

How to Create an Effective Scope of Work

Andrew follows a walkthrough checklist similar to the one outlined in J. Scott’s book, The Book on Estimating Rehab Costs. The checklist covers:

For each section, he documents necessary repairs and material choices. This approach allows contractors to bid on the same scope of work, reducing discrepancies and improving accuracy.

You can visit Andrew’s Sub Stack to get a copy of his Checklist and Scope of Work.

Standardizing & Systematizing Your Rehab Process

A clear scope of work template ensures that every contractor follows the same process. Andrew recommends:

Creating a standard materials list (same flooring, paint, fixtures in all rehabs)
Separating tasks into categories:
Pre-Construction: Essential repairs before the main work begins
Construction: The bulk of the rehab work
Vendor Items: Work done by specialists (flooring, painting, landscaping)
Final Punch List: The last-minute details before completion

"The more structured your process, the smoother the project runs. And when every job follows the same system, managing multiple rehabs becomes much easier," Andrew explains.

Learn More About Creating a Solid Scope of Work

For investors looking to cut down on project delays, eliminate surprise costs, and rehab properties with confidence, a well-crafted scope of work is non-negotiable.

To dive deeper into creating a bulletproof scope of work, check out Andrew Syrios’ original article on BiggerPockets titled “Construction Scope of Work.”

We suggest that MAREI members take time to watch a replay of the April 2024 Meeting with Adam Pontier on items that investors often miss when walking through a house. Andrew will be joining us at MAREI on March 11 to take us through renovations as they pertain to tenant turnover in our rental properties.

And if your plan is to buy properties to rehab for flip or for rental, then we have a Master Class on March 8th with Ray Sasser from the Alamo REIA on how to hire, fire and manage contractors.